Multibagger Pharma stock down 30% from high. should you buy

“DIVI delivered an in-line earnings in 1QFY23. While traction in custom syntheses (CS) waned in 1QFY23, sales of nutraceuticals picked up. In addition, the completion of the additional capacity will lead to a better sales run-rate in the generic segment.” Shares of Divis Labs with a target price of 4,340 each.

Management reiterated its EBITDA margin guidance of 40% for FY23 including other income. With capacity expansion in the generic segment, it expects sales to pick up going forward. DIVI is working towards peptide chemistry and HiPo conjugate drug-related technology, which according to the brokerage will boost opportunities over the next three to four years.

“While the higher base in FY22 may limit earnings growth in the near term, DIVI continues to strengthen its skill set in new technology such as peptides, HiPo conjugate drugs and contrast media products. This is the future business to tap into. is also building our business potential. Opportunity. We maintain our buy rating,” the note said.

Since its listing in March 2003, multibagger stock Having risen more than 41245% in 19 years, however, the pharma stock is down about 20% so far in 2022 (YTD), down about 31% from its highs.

Divi’s Laboratories Ltd is an Active Pharmaceutical Ingredients (APIs) and Intermediates manufacture and engaged in the manufacturing of leading Generic Compound Nutraceutical Ingredients and Custom Synthesis of APIs and Intermediates for global innovator companies.

“We have cut our FY23/FY24 EPS estimate by 6%/3% due to: a) inflation-linked increase in raw material cost and a higher operating cost due to increase in freight cost, and b) some in the CS segment. Moderation,” said Motilal Oswal.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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